Why Every Company Must Invest in Customer Service in 2022

Why Every Company Must Invest in Customer Service in 2022

Before, customer service for many companies started as an obligation. It was something that was done just because everyone else was doing it. In today’s world of immediate connections and cutthroat competition, no one can deny the need for a company to have customer service support for their products and services. However, having a customer service department and proactively building well-maintained customer service as a means of company growth are two different things.

Starting from the basics, the most obvious reason for having customer service is giving your customers a direct line of communication with you. Most people associate customer service with problem-solving. Any problems with the product or services, a customer knows they can contact support to get their issues resolved.

However, good customer service goes beyond just problem-solving. It is geared towards providing customer satisfaction. The help desk is equipped with all the necessary tools and strategies to provide customers with solutions to their problems and goes beyond that to establish a trust-based relationship with the customers.

Building a loyal customer base starts with having an excellent customer service team. This team needs to be empowered and invested in. It is up to the company’s higher-ups to realize the need and understand the importance of having impeccable customer support, which is the main distinguisher between companies in today’s competitive market.

Let’s look at some of the best reasons you should be investing in customer service in 2022.

 

1. Cheaper Customer Acquisition

It is no secret that retaining customers is cheaper than acquiring new ones. Having excellent customer service ensures that your customers are coming back for more. According to Dimensional Research, 52% of the customers report making additional purchases from a company after a positive customer support experience.

But that’s not all. In fact, having a retention rate of only 2% can decrease customer acquisition costs by as much as 10%. These stats are not new but are even more relevant in today’s fast and saturated market. Companies are spending thousands and even millions on unique marketing tactics. By ensuring good customer support (that is significantly cheaper), you can reach and lock in more customers than your competition and retain them.

 

2. Representing Your Brand

As mentioned before, customer service is not just there for problem-solving. Your customer service agents are the main point of contact between your company and your customers. So, investing in their training and equipment should be a top priority as they represent your brand to the world in general.

When a customer contacts support and have a good experience, it is not just the individual agent that is regarded positively but your company’s name. Similarly, having a slow or a downright lousy response to customers brings your image as a company down. In a recently published report, 17% of Americans state that they are more likely to do business with companies having an excellent customer service reputation. So, investing in the quality of your customer service is imperative considering the massive influx of potential buyers to the market after the pandemic as well.

Additionally, if a brand can sell itself as a company that values building a solid relationship with customers, the better revenue it will be able to generate.

 

3. Happy Employees Means Happy Customers

We all work better in a healthy and progressive environment. Keeping your employees happy and connected with the company’s mission is the best way to ensure success across all departments. When it comes to customer services, this need is even more pronounced.

Since your customer service agents come in direct contact with the customers, they must associate with the company’s name and want to excel at their job. This passion can only be cultivated when these employees feel empowered and cared for. In fact, 80% of employees report that they work harder when their boss appreciates their work.

So, the road to customer satisfaction directly goes through ensuring customer support staff’s satisfaction.

 

4. Free Referral

Never underestimate the power of a “friendly suggestion.” Your happy and loyal customers are your best promoters. You maintain such loyal customers by offering fantastic customer service. Whether it is simple queries, quick problem solving, or personalized connection to repeat members, everything related to customers is done by your hard-working support staff. Customers that report a company’s customer service as “good” are 38% more likely to recommend the company to others, and 72% of customers are likely to share their positive customer service experience with six other people.

So, keeping the customers satisfied is a priority for every company, but it is only when the top leadership realizes the importance of customer service in building that satisfaction that a company can reap the benefits of this satisfaction loop.

 

5. Increasing Company Revenue

Organizations need to realize that having good customer support results in revenue growth. We have discussed how an effective customer service team helps marketing and sales. All these benefits are directly tied to an increase in the company’s revenue. According to Business experts, a company can only increase profits from 25% to 125% by preventing customer defection by 5%. This prevention can only happen through an exceptional helpdesk and a dedicated customer service team. Also, companies that offer a better customer experience have 4% to 8% higher revenues than the rest of the market.

 

The Bottom Line

Happy, satisfied, and loyal customers are not just acquired by chance. These relationships need to be first established and then maintained. This can only be ensured when companies invest money and time in their customer service teams.

So, from employees to tools and equipment, customer support should be a priority for all businesses in 2022.